Question 1

A voucher is a written authorization to make a cash payment.

Accepted Answer

A) True 
 B)False

Question 2

The data needed to adjust the depositor's accounts based on the bank reconciliation are shown as adjustments to the depositor's records.

Accepted Answer

A) True 
 B)False

Question 3

Describe the features of a voucher system and list typical supporting documents for
a voucher.

Accepted Answer

A voucher system is used to control cash...

Question 4

Money market accounts,commercial paper,and U.S.Treasury Bills are examples of
cash equivalents.

Accepted Answer

A) True 
 B)False

Question 5

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the

Accepted Answer

A)  Internal Control Integrated Framework by the Committee of Sponsoring Organizations.
B)  Internal Control Integrated Framework by the Congress of Special Offerings.
C)  Internal Control Localized Structure by the Committee of Sponsoring Organizations.
D)  Internal Control Localized Structure by the Congress of Special Offerings.E) None of the above
F) A) and B)

Question 6

Accompanying the bank statement was a debit memorandum for bank service charges.What adjustment is required in the depositor's accounts?

Accepted Answer

A)  Increase Miscellaneous Expense;decrease Cash
B)  Increase Cash;increase Other Income
C)  Increase Cash;increase Accounts Payable
D)  Decrease Accounts Payable;decrease CashE) A) and D)
F) B) and D)

Question 7

If a business has several bank accounts,it has a separate record for each of them.

Accepted Answer

A) True 
 B)False

Question 8

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

Accepted Answer

A) True 
 B)False

Question 9

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

Accepted Answer

A) True 
 B)False

Question 10

In preparing a bank reconciliation,the amount of a cancelled check omitted from the depositor's records is deducted from the balance per depositor's records.

Accepted Answer

A) True 
 B)False

Question 11

A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.

Accepted Answer

A) True 
 B)False

Question 12

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

Accepted Answer

A) True 
 B)False

Question 13

EFT

Accepted Answer

A)  means Efficient Funds Transfer.
B)  can process certain cash transactions at less cost than by using the mail.
C)  makes it easier to document purchase and sale transactions.
D)  means Effective Funds Transfer.E) A) and D)
F) All of the above

Question 14

The Sarbanes-Oxley Act of 2002 applies to all publicly held companies.

Accepted Answer

A) True 
 B)False

Question 15

Identify each of the following as related to (a)the control environment, (b)risk assessment,or (c)control procedures.
(1)Mandatory vacations
(2)Personnel policies
(3)Report of outside consultants on future market changes

Accepted Answer

(1)(c)control proced...

Question 16

An element of internal control is

Accepted Answer

A)  fidelity insurance.
B)  prepaid insurance.
C)  monitoring.
D)  insurance expense.E) A) and C)
F) A) and D)

Question 17

A customer's check received in settlement of an account receivable is considered cash.

Accepted Answer

A) True 
 B)False

Question 18

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Accepted Answer

The Sarbanes-Oxley Act of 2002 was passe...

Question 19

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Accepted Answer

A) True 
 B)False

Question 20

List the principal advantage of Electronic Funds Transfers.

Accepted Answer

Advantage: more effi...

Exam 5: Sarbanes-Oxley,internal Control,and Cash

What is the purpose of the Sarbanes-Oxley Act of 2002,and why was it enacted?

Correct AnswerverifiedThe Sarbanes-Oxley Act of 2002 was passe...View AnswerShow Answer

In preparing a bank reconciliation,the amount of a cancelled check omitted from the depositor's records is deducted from the balance per depositor's records.

Correct AnswerverifiedShow Answer

The amount of the "adjusted balance" appearing on the bank reconciliation as of a given date is the amount that is shown on the balance sheet for that date after all adjusting entries have been entered.

Correct AnswerverifiedShow Answer

Describe the features of a voucher system and list typical supporting documents for a voucher.

Correct AnswerverifiedA voucher system is used to control cash...View AnswerShow Answer

A voucher is a written authorization to make a cash payment.

Correct AnswerverifiedShow Answer

When the petty cash fund is replenished,the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

Correct AnswerverifiedShow Answer

The data needed to adjust the depositor's accounts based on the bank reconciliation are shown as adjustments to the depositor's records.

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 applies to all publicly held companies.

Correct AnswerverifiedShow Answer

An element of internal control is

Correct AnswerverifiedShow Answer

A customer's check received in settlement of an account receivable is considered cash.

Correct AnswerverifiedShow Answer

The framework that has become widely accepted as the standard by which companies design,analyze,and evaluate internal controls is the

Correct AnswerverifiedShow Answer

Identify each of the following as related to (a)the control environment, (b)risk assessment,or (c)control procedures. (1)Mandatory vacations (2)Personnel policies (3)Report of outside consultants on future market changes

Correct Answerverified(1)(c)control proced...View AnswerShow Answer

A voucher is a form where pertinent data about a liability and the particulars of its payment are recorded.

Correct AnswerverifiedShow Answer

Accompanying the bank statement was a debit memorandum for bank service charges.What adjustment is required in the depositor's accounts?

Correct AnswerverifiedShow Answer

List the principal advantage of Electronic Funds Transfers.

Correct AnswerverifiedAdvantage: more effi...View AnswerShow Answer

A debit memorandum from the bank indicates that the bank has deducted an amount from the depositor's account.

Correct AnswerverifiedShow Answer

If a business has several bank accounts,it has a separate record for each of them.

Correct AnswerverifiedShow Answer

In preparing a bank reconciliation,the amount of deposits in transit is deducted from the balance per bank statement.

Correct AnswerverifiedShow Answer

Money market accounts,commercial paper,and U.S.Treasury Bills are examples of cash equivalents.

Correct AnswerverifiedShow Answer

EFT

Correct AnswerverifiedShow Answer

Correct Answer
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The Sarbanes-Oxley Act of 2002 was passe...
View Answer

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A voucher system is used to control cash...
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(1)(c)control proced...
View Answer

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Advantage: more effi...
View Answer

Correct Answer
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